UK Confirms £450 Cost of Living Payment for June 2025 – Who’s Eligible and When It’s Paid

£450 Cost Of Living Payment June 2025: As the cost of daily life in the UK continues to rise, many households are feeling the squeeze. In response, the UK government has confirmed a new £450 Cost Of Living Payment June 2025 to help low-income individuals and families manage essential expenses like energy bills, food, and housing. This initiative is part of a broader package aimed at easing the financial burden on those most affected by inflation.

This payment, automatically issued to qualifying individuals, is split into two components: one for those on income-based benefits and another for those receiving disability-related payments. With living expenses outpacing income for many families, this timely financial relief may offer the extra support needed to cover the basics.

£450 Cost Of Living Payment June 2025

The £450 Cost Of Living Payment June 2025 is a one-time, non-taxable financial support initiative provided by the Department for Work and Pensions (DWP) and HM Revenue & Customs (HMRC). It does not affect existing benefit entitlements and is designed to be directly deposited into the same bank accounts where recipients already receive their regular payments.

The payment is split into two parts:

• £301 for recipients of income-related benefits such as Universal Credit, Pension Credit, or Income Support.
  
• £150 for those who receive disability benefits, including Personal Independence Payment (PIP) and Disability Living Allowance (DLA).
  

Those who qualify for both benefit types may receive the full £450. The payment is part of the UK government’s ongoing support strategy in response to inflation and increasing energy prices.

Overview Table

Detail	Information
Payment Total	£450 (split into £301 + £150 based on benefit type)
Payment Period	May to June 2025
Agencies Involved	DWP and HMRC
Eligibility	Means-tested benefits, disability benefits
Application Required	No, paid automatically
Bank Reference	“DWP COLP” or “HMRC COL Payment”
Tax Status	Non-taxable
Impact on Benefits	No impact on existing entitlements

How Is the £450 Paid?

The payment will be deposited directly into the account associated with your benefit. If you’re on benefits administered by the DWP, like Universal Credit or ESA, expect the deposit to be labeled as “DWP COLP”. For HMRC-administered benefits like Working Tax Credit or Child Tax Credit, look for “HMRC COL Payment”.

Here’s how the payment is structured:

• Those receiving only income-based benefits will get £301.
  
• Those on disability-related benefits only will receive £150.
  
• Those qualifying for both will receive the full £450 payment.
  

No application is necessary—payments are issued automatically based on eligibility during the qualifying period.

Who Is Eligible For £450 Cost of Living Payment?

To receive the £450 Cost Of Living Payment in June 2025, you must have received one of the following benefits between February and April 2025:

• Universal Credit
  
• Pension Credit
  
• Income-based Jobseeker’s Allowance (JSA)
  
• Income-related Employment and Support Allowance (ESA)
  
• Income Support
  
• Child Tax Credit
  
• Working Tax Credit
  
• Personal Independence Payment (PIP)
  
• Disability Living Allowance (DLA)
  

Even if your payment was reduced to zero due to deductions (for rent or debts), you may still qualify. The DWP and HMRC will determine eligibility based on your status during the qualifying window.

When Will the £450 Be Paid?

While initial payments began in May 2025 for certain DWP claimants, the majority of recipients will receive their funds in June 2025. The exact timing depends on the type of benefit and which agency processes your payments.

Payment Schedule Overview:

• DWP Claimants (e.g., Universal Credit, ESA): Mid-May to early June
  
• HMRC Claimants (e.g., Tax Credits): Late May to end of June
  
• Pension Credit Recipients or late-processed cases: June to early July
  

If your payment hasn’t arrived by the end of June, you should:

1. Check your eligibility.
   
2. Review your bank account for references like “DWP COLP” or “HMRC COL Payment”.
   
3. Contact DWP or HMRC with your National Insurance number for further assistance.
   

What If You Don’t Receive It?

Not all payments will be made at the same time, but if you still haven’t received your £450 Cost Of Living Payment June 2025 by the last week of June, don’t panic.

Here’s what to do:

• Confirm your eligibility: Revisit your benefit status during the February–April 2025 period.
  
• Double-check your bank: Some payments may be issued separately from regular benefits.
  
• Update contact and bank details: Ensure your records are current with DWP or HMRC.
  
• Contact support: Call the DWP or HMRC customer helpline and provide your NI number to trace the status.
  

Delays may occur due to verification backlogs, particularly for recent changes in benefit claims.

Why Is This Support Being Given?

The UK government launched this payment in direct response to economic challenges that have disproportionately affected lower-income households. With inflation remaining above 5%, many families are forced to choose between heating and eating.

By targeting existing benefit claimants, the DWP and HMRC are ensuring that help goes directly to those most in need, without the barriers of paperwork or digital applications. This makes the £450 payment a crucial piece of the broader cost of living support framework.

Will There Be More Payments in 2025?

As of now, no additional cost of living payments have been confirmed for later in 2025. However, the government may announce further support measures depending on inflation trends and public finances. Upcoming updates, including the Autumn Statement 2025, may reveal plans for winter energy support, rent relief, or school meal assistance.

Final Thoughts

The £450 Cost Of Living Payment June 2025 is more than just a financial gesture—it’s a vital safety net during a time of continued economic pressure. For many UK households, this payment can mean the difference between stability and financial strain.

If you’re on any qualifying benefits, watch your bank account this month. Check for those familiar payment labels and ensure your details are current with DWP or HMRC. Most importantly, don’t hesitate to reach out if something doesn’t look right.

FAQs